Earned Value (EV) – Cost & Resource Loading
Construction specifications now frequently require CPM schedules to be cost loading such that the project schedule is used to generate all pay applications. If the cost loading is not correctly inputted and distributed in Network Analysis Schedule (NAS) or Baseline it will be an uphill battle to process pay applications throughout the duration of the project. Many specifications are now requiring Earned Value (EV) analysis which is a cost based methodology of analyzing progress. If the cost loading is not properly inputted by someone who has an understanding of the EV process, you can have a project showing an early completion date, while at the same time having the EV analysis showing the project is running behind schedule.
Improper cost and resource loading on projects can expose the GC to undue harassment at project meetings because a paper analysis is showing your well-run and on-time project is behind schedule. Improper cost loading on projects which use the schedule to generate pay applications could result in the GC financing the project when many legitimate costs are removed from the pay application because they are not supported by the schedule.
Earned Value Project #1:
Boeing Dreamliner and
BR&T Production Facilities
North Charleston, SC
Palmetto Scheduling developed and maintained numerous Primavera P6 CPM schedules for several different GC’s working on the Boeing Dreamliner and BR&T facilities. All scheduling adhered to Boeing’s stringent cost loaded and Earned Value (EV) CPM schedule specification requirements. (see photo link page for photo source)